ACA ABS 2003-1 Limited Rated 'AAA/AA+/A+/BBB' by Fitch Ratings.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 21, 2003

ACA ABS 2003-1, Limited's $210 million class A-T floating-rate term notes, $80 million class A-R floating-rate term notes and $30 million class A-M floating-rate term notes are rated 'AAA' by Fitch Ratings. Additionally, Fitch rates the $15 million class B floating-rate term notes 'AA+', $29 million class C floating-rate deferrable interest term notes 'A+' and $18 million class D floating-rate deferrable interest term notes 'BBB'. The ratings on the class A-T, class A-R, class A-M and class B notes address the timely payment of interest and ultimate repayment of principal; the ratings on the class C and class D notes address the ultimate payment of interest and principal.

The ratings are based on the capital structure of the transaction, the quality of the collateral, the overcollateralization and interest coverage provided for within the indenture, and the experience of ACA Management LLC (ACA) as the collateral manager.

The proceeds of the notes will be used to purchase a diversified investment portfolio consisting primarily of residential mortgage-backed securities (RMBS), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), and collateralized debt obligations (CDOs). The reinvestment period will end no later than four years after the deal closing date of May 20, 2003. The notes have a stated maturity of June 10, 2038. Upon completion of the reinvestment period or the breach of a coverage test as outlined in the indenture, the notes will begin receiving principal repayment, sequentially starting with the class A-T and A-R notes which are pro rata in payment.

The collateral manager will purchase and sell all investments for the portfolio on behalf of the issuer. ACA ABS 2003-1, Ltd. is a special purpose company, incorporated under the laws of the Cayman Islands. ACA will manage the portfolio in accordance with specific investment restrictions as outlined in the indenture.

ACA Management LLC is a NY-based asset manager, formed in May 2001 and a member of the American Capital Access group of companies. ACA employs a staff of more than 25 professionals with diverse capabilities stemming from the capital markets, insurance/reinsurance, real estate, and commercial lending business sectors. Currently, the team manages $3.8 billion in assets through three synthetic CDOs and two structured finance CDOs including this transaction.